Pushpay to raise A$40 mln in ASX listing next month

Monday 12th September 2016

Pushpay will raise A$40 million as part of a secondary listing on the ASX in October in an effort to open up the shares to US investors.

The mobile payments app developer will raise capital from Australian exempt investors and qualified investors from other companies through Australian wealth managers Ord Minnett as it prepares for a foreign exempt listing, it said in a statement this morning. The A$40 million bookbuild will take place in early October, immediately prior Pushpay's expected listing.

The rate of New Zealand companies listing in Australia has sped up since last September when the ASX amended its listing rules to recognise firms listed on the NZX main board under a New Zealand foreign exempt listing category, meaning they don't have to issue a prospectus.

Pushpay provides mobile commerce tools that help make payments between consumers and merchants easier and is geared to mobile charitable giving, having gained traction in the US faith sector.

The ASX listing will allow US-based institutional investors to trade Pushpay shares more easily, as legal restrictions in the US constrain those investors' ability to resell the shares on the NZX, the company said.

"We believe the inclusion of Australia-based exempt investors, in addition to USA-based investors, will support the success of the capital raising and the proposed ASX foreign exempt listing," chief executive Chris Heaslip said. "Expanding the availability of the capital raising into Australia and elsewhere will diversify Pushpay’s shareholder base and help the company gain index inclusion."

Pushpay also reaffirmed its guidance of reaching US$72 million (NZ$100 million) of annualised committed monthly revenue by December 2017, and said it remains on track to reach breakeven on a monthly cashflow basis in calendar 2017.

The company said it was possible some shareholders may choose to sell their existing shares through the bookbuild at the same price as the primary capital raising price, but none of Pushpay's directors nor their associated interests would sell any shares in the process.

The NZX-listed shares were unchanged at $2.37 and have climbed 35 percent this year.

(BusinessDesk)

BusinessDesk.co.nz

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